CITY OF COMMERCE, Calif. — 99 Cents Only Stores reported that sales for the first quarter increased by 4.6% to $336.6 million and same-store sales increased 2.7%. Consolidated net income increased by $7.3 million to $16.8 million, or 24 cents per diluted share, versus $9.5 million in the prior year, or 14 cents per diluted share.
Eric Schiffer, CEO of 99 Cents Only Stores, stated, "For our second quarter of fiscal 2011, ending on Sept. 25, which is typically our most challenging quarter due to seasonal factors, we expect low single digit same-store sales and are targeting a 20% improvement in pre-tax profit margin compared to the second quarter of fiscal 2010. In addition to the seasonal factors that cause the September quarter to be less profitable than the June quarter, we expect higher freight costs versus last year’s second quarter and furthermore, we are investing in a store level merchandise ordering system, and will incur training and learning costs as we complete the roll out of phase one of this system to our stores this quarter.
"For fiscal 2011 we expect positive same-store sales in the low single digits and plan to open approximately 5% more stores in our existing markets, primarily in the second half of the year. "